DOJ Says It Won’t Reopen Criminal Investigation Into Former Fed Chair Powell
By CU Today Staff —
WASHINGTON — The Justice Department will not reopen its criminal investigation of former Federal Reserve Chair Jerome Powell over the central bank’s troubled headquarters renovation, Attorney General Todd Blanche said Friday, after the Fed’s inspector general found no evidence of criminal wrongdoing.
“We’re not reopening a criminal investigation into him,” Blanche told Bloomberg News.
Blanche’s decision follows a 120-page inspector general report that found no grounds for a criminal referral or evidence of administrative misconduct related to the renovation, while sharply criticizing the Fed’s management of the project. The renovation of two historic Fed buildings has grown to about $2.4 billion, with the watchdog finding the Fed failed to establish an effective guaranteed maximum price and repeatedly departed from contract provisions intended to control costs. The inspector general also found that marble, water features and a garden terrace criticized by the White House did not materially contribute to the overruns.
The Justice Department opened a criminal investigation earlier this year focusing in part on Powell’s June 2025 congressional testimony about the renovation, but prosecutors ended the investigation in April. President Donald Trump renewed pressure on Powell after the inspector general report was released last week, asking Blanche to review its findings and determine whether additional action was warranted. Powell stepped down as Fed chair in May but remains a member of the Federal Reserve Board.
The matter may not be completely closed. Blanche said DOJ could investigate if new evidence of criminal wrongdoing emerges from an independent audit ordered by Powell’s successor, Fed Chairman Kevin Warsh. Warsh has also brought in the General Services Administration to help oversee the project and said the independent audit will examine project costs and determine whether the Fed paid for services it did not receive.
Originally reported by CU Today.